After the partnership has been operating for several years, the Capital accounts of Martin, Steven, and Sania are $50,000, $32,000, and $18,000, respectively. Sania decides to leave the partnership and is allowed to withdraw $18,000 in cash. Prepare the journal entry to record the withdrawal on the partnership books.
Answer to relevant QuestionsIndicate whether each statement that follows is a reflection of (a) Normal partnership (b) Limited partnership, (c) Joint venture,(d) S corporation.1. A special type of partnership that, like corporations, confines the ...Assume that the partnership agreement of Shah and Ruben in E4 A states that Shah and Ruben are to receive salaries of $40,000 and $48,000, respectively; that Shah is to receive 6 percent interest on his capital balance at ...Wilkes and Chevron are partners in a tennis shop. They have agreed that Wilkes will operate the store and receive a salary of $104,000 per year. Chevron will receive 10 percent interest on his average capital balance during ...Why does a company usually not want to issue all its authorized shares?At the beginning of 2014, Salinas Company incurred the following start-up and organization costs: (1) attorneys’ fees with a market value of $10,000, paid with 6,000 shares of $1 par value common stock, and (2) ...
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